Technical outlook:
EURUSD rose through 1.0700 on Monday before finding resistance and turning lower. The currency pair missed the recent swing high at 1.0736 by a few pips and might be looking to drag towards 1.0350 and 1.0000-50 in the next few trading sessions. The single currency pair is seen to be trading close to 1.0670 at this point in writing as the bears want to be in control.
EURUSD prices have reacted right at the trend line resistance, which connects 1.2266 and 1.1500 highs as seen on the daily chart here. Furthermore, the currency pair has also tested the Fibonacci 0.382 retracement of the larger-degree downswing between 1.2266 and 0.9535. A high probability remains for a turn lower from here towards 1.0350 and the 1.0000-50 area at least.
EURUSD has also completed its corrective rally, which began from the 0.9535 lows earlier, just below the 1.0750 mark. The bears will be inclined to drag prices lower below 0.9535 in the next several weeks. Alternatively, if the trend has reversed to the upside against the 0.9535 lows, the instrument might still drop to the 1.0000-50 mark, before finding support again. The bias is looking lower in the near term.
Trading idea:
A potential bearish move against 1.0750
Good luck!
Relevance up to 03:00 2023-01-31 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
